HC Deb 08 June 1982 vol 25 cc76-7W
Mr. Needham

asked the Chancellor of the Exchequer by how much net incomes will be reduced proportionately during the tax year 1982–83 as a result of unemployment benefit becoming subject to taxation in July 1982 for (a) a single person and (b) a married couple whose weekly gross earnings as a proportion of average earnings are half, three-quarters, one, one and a half and twice and who during the financial year are (i) employed for the first three months and unemployed for the remaining nine months, (ii) employed for the first six months and unemployed for the remaining six months, (iii) employed for the first nine months and unemployed for the remaining three months and (iv) employed for the first four months, unemployed for the next four months and employed again for the remaining four months.

Mr. Ridley

The following table gives, for the employment patterns specified, the percentage reduction in net income in 1982–83 resulting from taxation of unemployment benefit from 5 July 1982:

Employment pattern
(i) (ii) (iii) (iv)
75 per cent.
Single 12 6 3 4
Married couple 6 8 4 5
100 per cent.
Single 10 5 2 3
Married couple 10 7 3 4
150 per cent.
Single 8 4 1 2
Married couple 11 5 2 3
200 per cent.
Single 7 3 1 2
Married couple 9 4 2 2

Notes:

  1. 1. Net income=earnings plus unemployment benefit less income tax and NIC.
  2. 2. The calculation of income tax assumes that only the basis personal allowances are availble and that, in the case of a married couple, only the husband is earning.

Mr. Needham

asked the Chancellor of the Exchequer how much extra tax, in cash terms, will be paid in the tax year 1982–83, as a result of unemployment benefit becoming subject to taxation in July 1982 by (a) a single person and (b) a married couple whose weekly gross earnings as a proportion of average earnings are half, three-quarters, one, one and a half and twice, and who during the financial year are (i) employed for the first three months and unemployed for the remaining nine months, (ii) employed for the first six months and unemployed for the remaining six months, (iii) employed for the first nine months and unemployed for the remaining three months and (iv) employed for the first four months, unemployed for the next four months and employed again for the remaining four months.

Mr. Ridley

The extra income tax due in respect of 1982–83, resulting from the taxation of unemployment benefit from 5 July 1982, is as follows. Amounts have been rounded to the nearest five pounds.

Figures in £s
Proportion of average earnings Employment Pattern
(i) (ii) (iii) (iv)
Single
½ 120 190 95 125
¾ and above 275
Married Couple
½ 25 195 160 200
¾ 185 305
1 340
1½ and above 450

Notes: 1. Average earnings for 1982–83 have been assumed to be £160 per week.

2. The calculation of income tax assumes that only the basic personal allowance is available and that, in the case of a married couple, only the husband is earning.